Her customers at Columbine - a Corte Madera boutique laden with Florentine perfumes, French jacquard linens and crystal tableware from Vermont - are still buying, Sandler said. The problem is that there are fewer of them than before.

"Right now, there just aren't as many people out and about," Sandler said. "Nobody knows what to expect. It's not a significant downturn; it's manageable. But it's the first time we're feeling it."

As shock waves from the ongoing economic crisis continue to ripple across the nation, high-end businesses like Sandler's - once thought to be recession-proof - are beginning to feel the effects.

"For the first time, maybe ever, the luxury industry might take a hit this year," said Kathy Grannis, a spokeswoman for the National Retail Federation. "Usually, luxury customers can weather the storm a bit better, since their customers aren't as affected by gas and grocery prices and home values. But the affluent customers have started taking a look at their stock options and 401(k)s, and they're beginning to think twice about large purchases."

Changing priorities

Mary Lou Hale is already starting to see the change. As owner of The Wardrobe Exchange, a San Anselmo consignment shop, she's used to seeing customers who "appreciate beautiful things, but don't have the dollars to buy them in the real world," she said.

Lately, however, she's noticing that customers who normally search for designer labels in high-end department stores are beginning to visit her shop. The items people bring in for consignment are changing too, she said.

"It used to be that we'd get things with the price tags still on them," Hale said. "Now I'm starting to see things that maybe aren't as new. People are beginning to get desperate."

That desperation is driven by a lack of credit, said Luis Calingo, dean of the School of Business and Leadership at Dominican University in San Rafael.

"Credit card companies have begun lowering the credit limits on their cards," Calingo said. "That's making it more difficult for the average person, since Americans are so dependent on their use of credit cards. To the extent that holiday spending is dependent on their use, I foresee a decline."

The credit crunch is causing consumers to reconsider what's important, said Leslie Muela, who works in a dentist's office and moonlights at a Corte Madera jeweler's shop.

"Dental procedures that aren't an emergency are now a luxury," Muela said. "People aren't paying out of pocket for dental expenses."

The inability of its customers to find credit may have caused San Rafael auto dealership Ford of Marin to close its doors without warning on Friday. At San Rafael Chevrolet, customers - when they shop at all - are walking past the Hummers and Cadillacs to seek out economy vehicles, said General Manager Ray Nemati.

"Small, four-cylinder cars are easier to finance," Nemati said. "Most of the banks won't finance an eight-cylinder. People are afraid of purchasing, and I don't blame them. If someone has $50,000 right now, would they rather buy a car or put it under their pillow?"

About 80 percent of his customers are deferring their purchases, said Nemati, who blames the rising price of gasoline and a general lack of trust in the economy.

"Nothing is doing well," Nemati said. "I've been in this business, in different places, for over 30 years. But this is the worst."

Just how much the crisis is affecting business seems to depend on where you look. In Mill Valley, cobbler Jacob Kupolian said few of his well-heeled customers have changed their spending habits.

"Lifestyle is a small factor in their incomes," said Kupolian, owner of Strawberry Shoe Repair. "They may not be buying as many platinum bracelets, but I don't think it's made much of a difference."

But in nearby Sausalito, the nonprofit Spaulding Wooden Boat Center has seen the number of boats offered as donations double in the past month.

"We used to get one or two a month. Now it's at least one a week," said Executive Director Mark Welther. "The costs of maintaining a boat have become oppressive. People want to part with their boats."

A green light at the end of the tunnel

In Fairfax, retailers are hoping to drum up business by promoting the town's connection to "green" causes.

"Fairfax is kind of like the recycling king, with more car repair and used clothing stores than any other town in Marin," said Chris Lang, president of the Chamber of Commerce. "People can come here, go for a hike, get a sandwich and find a lot of great bargains here."

Fairfax may have the right idea, said business professor Calingo.

"The retailers that might benefit are those who deal with products that are potentially energy-saving," said Calingo, noting that retail giant Wal-Mart has profited by selling a line of jewelry made from "sustainable" sources.

Greg Snowden said he believes going "green" has helped him survive at a time when others in the building materials and furnishings market have gone out of business.

"Overall, my segment of the market is down 30 percent," said Snowden, who sells nontoxic paint, organic cotton bedding and other products at his Green Fusion Design showroom in San Anselmo. "People want to know what will last, what's good for the environment - and what's going to save me money. People are coming to 'green' for healthier products that result in cost savings."

"My phone doesn't stop ringing," said Daniel Rivest, owner of Beyond Oil, a Mill Valley solar panel distributor. "Our original demand came from people who thought the solar tax credit was going to disappear. Now that they find out it's going to improve, we're getting even more demand."

Fear that the price of oil will rise again, driving home heating costs through the roof, is generating new business for Matt Jung, owner of Novato-based 88HVAC, a geothermal pump installation company.

"People are realizing we don't live in the state of free energy any more," Jung said. "Nor do we have control over what will happen. We can't count on anybody - we have to do it ourselves."

That attitude may be why Thomas Friedman's book "Hot, Flat, and Crowded: Why We Need a Green Revolution - and How It Can Renew America" has become a top seller at Whyte's Booksmith in San Anselmo. Inspirational books are also popular, owner Michael Whyte said.

"People can no longer depend on their material well-being, so they want to improve their personal well-being and their faith," Whyte said. "They're reaching out for deeper values."

Down to the essentials

Others are reaching for a glass of wine. At San Anselmo's Ross Valley Winery, owner Paul Kreider said as much as 20 percent of his sales come from a new blend - Recession Red - that's sold according to the current value of the stock market.

"I priced it according to 0.1 percent of the Dow Jones," said Kreider, who said Wednesday he's close to selling out of the popular wine. "At the time I created it, it was $12.50 a bottle. Today it's $9.44."

Kreider used two more expensive vintages - a 2007 white zinfandel, regularly $28 a bottle, and a 2006 Cabernet that sells for $26 a bottle - to create his wine. But he says the loss in revenue is worth it.

"It gets people here. What I lose in sales, I gain in publicity," said Kreider, who's relying on the interest generated by the wine and the loyalty of longtime customers to get him through the current crisis.

"People are still doing well here, but they're strapped," he said. "But for a lot of people, wine is an essential part of life."

Many business owners say they're waiting for something - the holiday season, the presidential election, action by Congress - to help them figure out when or if conditions will improve.

In Olema, Bear Valley Inn owner Amanda Eichstaedt enjoyed a banner summer, buoyed by overseas visitors attracted by the weak dollar and the fact that West Marin was one of the few wilderness destinations in Northern California that wasn't on fire. She's now hoping to lure local travelers.

"A lot of folks within the Bay Area, Sacramento and the foothills of the Central Valley are sticking closer to home because of the price of gas," Eichstaedt said.

Jeweler Drew McEachern is using the lessons he has learned from 33 years of Ross Valley floods to keep his business alive.

"I learned from the flood of 1982 to be careful what you spend," said McEachern, owner of Antique Timepieces in San Anselmo. "I had 10 beautiful Victorian cabinets before the flood, and I haven't replaced them yet. I put the money into my inventory, which I now display on tables from Costco."

While McEachern is concerned about the economy, he prefers to remain optimistic.

"I believe in America," he said. "I believe the American economy is going to swing back.